The value of goods added to a firm's inventory in a certain year is treated as
a. consumption, since the goods will be sold to consumers in another period.
b. intermediate goods, and so is not included in that year's GDP.
c. investment, since GDP aims to measure the value of the economy's production that year.
d. spending on durable goods, since the goods could not be inventoried unless they were durable.
c
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Refer to the above figure. At a price of $2, excess quantity demanded equals
A) 0. B) 3. C) 12. D) 15.
Two suspected drug dealers are stopped by the highway patrol for speeding. The officer searches the car and finds a small bag of marijuana and arrests the two. During the interrogation, each is separately offered the following: "If you confess to dealing drugs and testify against your partner, you will be given immunity and released while your partner will get 10 years in prison. If you both
confess, you will each get 5 years." If neither confesses, there is no evidence of drug dealing, and the most they could get is one year each for possession of marijuana. If each suspected drug dealer follows a dominant strategy, what should he/she do? a. Confess regardless of the partner's decision b. Confess only if the partner confesses c. Don't confess regardless of the partner's decision d. Don't confess only if the partner doesn't confess
Technology is defined as
A) the maximum output which can be attained from a stock of physical capital. B) society’s pool of applied knowledge concerning the production of goods and services. C) output beyond the production possibilities boundary. D) the utilization of the most advanced machinery.
The equilibrium level of GDP is always accompanied by full employment and stable prices.
Answer the following statement true (T) or false (F)